Sun Pharma raises stake in Ranbaxy Malaysia to 86%

On January 8th Sun Pharmaceutical Industries Ltd said that one of its subsidiaries had increased its stake in Ranbaxy Malaysia Sdn Bhd, the Malaysian unit of Ranbaxy Laboratories Ltd. Sun Pharmaceutical's unit raised its stake in the Malaysian company to 85.9% from 79.6% by acquiring 508,313 shares for M$2.2m (US$544,498).

The subsidiary raised its interest in Ranbaxy Malaysia to 79.6% from 71.2% in October 2017. Sun Pharmaceuticals acquired Ranbaxy Laboratories in 2015 to create the world's fifth-largest generic drugmaker by revenue. At the time, Ranbaxy had run into trouble with the US Food and Drug Administration (FDA) over compliance issues at three facilities in India. Earlier this year, FDA lifted its import ban on one of these plants but it continues to bar US imports from the other two.

In Malaysia, Ranbaxy is among the top ten pharmaceutical companies. It has a manufacturing unit in the district of Kedah, where it produces oral drugs, including tablets, capsules and dry syrups. Retail pharmaceutical sales in Malaysia stood at an estimated US$1.8bn in 2016 and are expected to reach US$2.6bn by 2021.

More than 100 Indian pharmaceutical companies operate in Malaysia, primarily through joint ventures with local firms. Besides Ranbaxy, other Indian companies present in Malaysia include Cipla Ltd, Dr Reddy's Laboratories Ltd and SM Pharmaceuticals.